Loan protection cover is still causing confusion and concern
- 9TH NOVEMBER 2007
Loan protection cover is still causing a great deal of concern and confusion despite an investigation by the Financial Services Authority, and clear plans laid out regarding the improvements needed to be made to clear up confusion and make the cover more transparent.
While some changes for the better have been seen it seems that many more need to be made, a recent finding revealed that there has been very little if any improvements made in three out of the five key areas that the Financial Services Authority looked into. Many firms are still treating the consumer unfairly at the time of selling the loan protection cover although one positive development is that lenders are now more likely to explain that the cover is optional and can be bought independently.
However when it comes to mentioning the exclusions which could mean loan protection cover wouldn’t be in the consumers best interests many firms are still falling short with little information being given regarding what is actually covered in the policy or how much the policy will cost.
Loan protection cover can protect your monthly loan repayments if you should come out of work after suffering from an accident, sickness or through unemployment. A policy could begin to pay out between the 31st and 90th day of being out of work and would then continue for between 12 and 24 months depending on provider. Ethical specialist British Insurance offer loan protection cover that can save you up to 80% in comparison to high street lenders, offering sound advice and give the key facts of a policy.
If you do not want to risk being mis-sold your loan protection cover you have to realise there are exclusions such as being in part time work, suffering a pre-existing medical condition or being self-employed, British Insurance gives this advice in plain English which means determining if a policy is suitable for your needs easier.
